Meyer Apparel Ltd Management Discussions

MANAGEMENT DISCUSSIONS AND ANALYSIS REPORT

Your Directors have pleasure in submitting the Management Discussion and Analysis Report for the year ended March 31, 2024 as under

Industry Structure & Development

Y our Company, Meyer Apparel Limited is dealing in the Retailing of Mens Garments and manufacturing through Contractor. The Industry as a whole sis facing severe demand compression. Indias apparel industry is in decline over the last three years facing severe completion from other Asian countries. In addition, local demand has been subdued and thus entire industry is under demand pressure. This has been further accentuated by cost increases due to increase in minimum wages making local operations uncompetitive.

Segment-wise Performance

Your company operates in single segment of manufacturing of readymade garments for both wholesale market and retail market. The industry segment was as a whole has been hit due to the pandemic and consequently your company had much lower volumes and thin margins on that account for past 3 years. Factory operations had to be shut due to Pandemic and are still to revive due to lack of demand and availability of skilled labour.

The Company has generated revenue from retailing of garments and is exploring other avenues to seek revenue.

Outlook, Risk & Concern

Your company has been forced to focus on the domestic markets for its business due to sharp fall in price in the export market making it unviable for the company. Domestic market being seasonal in nature, the company has been examining feasibility of the operations on a pure domestic platform. Revival of domestic market is continuous to be the key to sustenance of your company. Further Company is looking at alternate avenues including retailing to support business operations.

Internal Control

The Company has adequate system of internal controls to ensure that the transactions are properly authorized, recorded, and reported and in the FY 23-24 the company had adopted hybrid mode i.e. work from home and at work place to give flexibility to employees and control expenses and which reduces the manufacturing cost and helps the Company to be competitive. Self-assessment of the processes / controls are also used as the basis of WTD and CFO certification as required under Regulation 17(8) of the SEBI (LODR) Regulations, 2015.

Financial Performance with respect to operational performance

The gross turnover of the Company has decreased by 32.47% in comparison with the last year and Company is exploring new avenues to generate revenue and making all efforts to improve the same.

CFO and WTD Certification in pursuance of the SEBI (LODR) Regulations, 2015 on Corporate Governance

We have reviewed financial statements and the cash flow statement for the year ended March 31,2024 and that to the best of our knowledge and belief:

a. These statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;

b. These statements together present a true and fair view of the companys affairs and are in compliance with existing accounting standards, applicable laws and regulations.

To the best of our knowledge and belief, no transactions entered into by the company during the years which are fraudulent, illegal or volatile of the companys Code of Conduct.

We accept responsibility for establishing and maintaining internal controls for financial reporting andthat we have evaluated the effectiveness of internal control systems of the company pertaining to financial reporting and that there are no deficiencies in the design or operation of such internal controls.

There is no:

a. significant changes in internal control over financial reporting during the year;

b. significant changes in accounting policies during the year; and

c. Instances of significant fraud.